Portugul-based retailer Jeronimo Martins has booked a jump in first-half sales and earnings, driven by the contribution from new stores and market share gains.
The company, which generates the majoriyt of its turnover in Poland, said sales in the first six months of the fiscal year rose 12.6% to EUR5.64bn (US$7.5bn). Like-for-like sales were up 3.9% and the company was able to grow market share at Polish chain Biedronka and Portguese business Pingo Doce.
In Poland, Jeronimo Martins said the economy “continues to slow”. Nevertheless, the firm booked sale growth of 16% at its Biedronka stores, which gained market share and grew like-for-like sales by 5.3%. Domestic sales at Pingo Doce were “very strong” despite “economic conditions remaining weak”. Sales were up 3.7% with comparable sales growing 2%, the group said.
The company saw an 11% increase in EBITDA during the half, which increased to EUR350m. Net profit grew 15.2% to EUR169m.
Looking to the remainder of the year, Jeroniomo Martins said it is expecting to see continued economic challenges and increasing competition. However, it added: “We believe that the performance in the first six months of the year, resulting in growth ahead of the market and gains in our market positions, confirms the capacity of our businesses to deliver a strong performance in challenging times.”
Click here to view the full release from the company.